Once valued at over US$160 million, the social news aggregator has finally sold for just a fraction of that sum.
How the mighty has fallen. It's an ignominious day in Digg-land as the site sells to New York company Betaworks for just US$500,000 — a small fraction of the over US$160 million at which it was once valued, according to The Wall Street Journal.
The website, which allows users to post, vote and comment on content, has been in decline for a number of years. Launched in 2004, it enjoyed a number of years of popularity; however, in August 2010, after the launch of Digg v4, visits began to sharply decline after a period of steady, but slow, traffic migration to competitor news aggregator Reddit.
Graph of comparative site traffic for Digg and Reddit in 2010.
(Credit: Adam Sherk)
Digg CEO Matt Williams said in a blog post:
We couldn't be happier to announce that the next generation of Digg will live on with the team from Betaworks. Betaworks is combining Digg with News.me, a Betaworks company with an iPad app, iPhone app and daily email that delivers the best stories shared by your friends on Facebook and Twitter. Digg will join a portfolio of products developed by Betaworks designed to improve the way people find and talk about the news. Betaworks founder John Borthwick will be the CEO of the new Digg.
What do you think? Can Betaworks save Digg? Sound off in the comments below.